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Bitcoin Holds Above $9,000 Following Retest of Inverse Head and Shoulders

March 6, 2020 at 14:36 by Matt Jackson

Bitcoin has sustained yesterday’s price gains, holding the rest of the cryptocurrency market in the green. Analysts anticipate a move to $9,500 as the cryptocurrency confirmed a break above an inverse head and shoulders’ neckline.

Bitcoin prices broke above the $9,000 barrier in Thursday trading, pushing prices above the neckline of an inverse head and shoulders. The bullish pattern is not seen as a strong indicator in cryptocurrency trading, except when it follows a sharp decline in prices, as witnessed prior to this move, and unless prices retest the neckline, as occurred late last night when prices very briefly dropped back to support at $9,000. The target for the head and shoulders break is $9,500 to $9,550.

Bitcoin Inverse Head And Shoulders

Bitcoin’s gains come while other markets are suffering at the hands of coronavirus fears. The FTSE was down more than 3% during morning trading while the DOW was down 800 points overnight. S&P Futures were down 3.1% and Nasdaq futures posted a 3.4% loss. There are fears that the continued spread of the virus could lead to a global recession. Nearly 100,000 cases of the disease have been reported in more than 70 locations around the world.

It was announced on Wednesday that India’s Supreme Court had ruled to overturn a ban on crypto trading imposed by the country’s Central Bank. The announcement was welcomed by many, not only traders in the region but also those in the technology and financial industries, with many commentators celebrating the chance to innovate. The bank initially banned all institutions from offering cryptocurrency trading services to customers in April 2018, citing a threat to central banking.

Almost immediately following this week’s ruling, a number of cryptocurrency exchanges announced that they were allowing deposits and trading once again. However, it doesn’t look like the fight is over just yet. The Reserve Bank of India has indicated that it will fight the ruling and it is believed that their primary concern is the risk to the country’s banking.

In the UK, the Financial Conduct Authority (FCA) has warned individuals against the use of derivatives exchange BitMEX, stating that the company has not gained authorization from them, despite the fact that “almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by us,” and said that investors should be “especially wary of dealing with this unauthorised firm.”

At 14:00 GMT, Bitcoin (BTC) prices were up 0.16% and the cryptocurrency was changing hands at $9,122.05 while Ethereum (ETH) had gained 2.51% to trade at $238.35. Ripple (XRP) has added 1.19% to its price and now costs $0.244. Bitcoin Cash (BCH) and Bitcoin SV (BSV) are up 2.6% and 0.09% and cost $347.81 and $244.68 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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